brazil-vale-mining-company-logoSaudi Basic Industries Corporation (SABIC) signed a cooperation contract with the mining company Vale SA for 10 years. Vale SA will supply DRPs to factory SABIC. Contractual agreements between the two companies, Vale will supply 3.3 million tons of DRPs.

SABIC Vice President gave a positive response to the cooperation between the two companies, as Vale is one of the largest mining companies in the mining sector. Vale is the largest producer of iron ore and iron ore pellets, the main raw material for steel industry, producers of copper, which is used to produce stainless steel, coal as an energy source.

In 2007, Vale set up representative offices in the Middle East to expand cooperation with Middle East companies and set up some factories in the industrial complex at Sohar. Plant will have a nominal annual production capacity of 9 million metric tons of direct reduction pellets. The operation is scheduled to begin in the second half of 2010, with an estimated total project cost at approximately $ 1.4 billion.

Sulaiman Abdulaziz Al-Humayd, Vice President of Hadeed for metals and chairman, and José Carlos Martins, Vale’s executive director Ferrous Minerals, signed a contract, which further strengthened their relationship.

This also highlights the Vale’s “unique ability as a long-term reliable supplier of high quality iron ore and pellets,” given the large scale operations and excellence.

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